The market for industrial explosives is on a continuous rise due to rapid increase in mining activities, especially in the developing economies globally. It is projected to reach $15.9 billion by 2022, growing at 6.7% from 2016 to 2022, according to a new report by published by Allied Market Research. The mining segment dominated this market, occupying more than four-fifths share of the market revenue in 2015.
Moreover, increase in demand for earth minerals, such as bauxite, iron ore, coal, and rare earth metals, as well as gold and silver, is a key factor fuelling the market growth. In addition, growth in use of industrial explosives, especially in the construction industry for tunnelling and other applications, along with increase in inclination of construction professionals toward the use of industrial explosives to save time and labour costs drive the growth of the market.
The prices for high explosives were stronger than other industrial explosives in 2015. However, the prices are expected to witness a significant drop by 2022 due to increase in innovations in the manufacturing of high explosives.
Initiatives by governments of various economies to tap rich underground mineral resources to achieve pace and higher gross domestic product in the ever-growing competition are some of the factors that accelerate the market growth. However, fluctuating prices of ammonia along with stringent regulations on the storage and transportation of industrial explosives along with high initial costs required for their manufacture are some of the key factors that hamper the market growth. Moreover, maintenance and aging costs and compliance with quality, specifications, and testing are some major factors that hinder the growth of the market.
In the year 2015, the mining segment explosives market revenue and is expected to maintain its lead throughout the forecast period. This is due to increase in investments in mining activities to tap rich mineral resources to fulfil the rise in demand globally. Blasting agents dominated high explosives, as they are used in bulk quantities to detonate mines and mountains.
The Allied Market Research study made the following observations:
- The blasting agents segment is anticipated to grow at the fastest rate during the analysis period.
- Asia-Pacific is estimated to continue to lead the market, growing at 5.7% in terms of volume.
- China occupied more than one-third of the total share of the Asia-Pacific industrial explosives market in 2015.
- India is estimated to grow at the highest rate: 8.1% in terms of revenue.
- The non-metal mining end-use industry accounted for half of the mining segment in 2015.
Asia-Pacific and Latin America collectively accounted for more than half of the market in 2015, and are expected to maintain this trend throughout the forecast period.
This is due to the increase in mining and mineral exploration activities due to abundance of rich mineral resources in these regions, especially in China, India, Chile, Peru, Brazil, and others.
Key players in the global industrial explosives market focus on acquiring local players to strengthen their market reach as well as to expand their customer base.
CMJ readers can access the detailed report at www.AlliedMarketResearch.com/industrial-explosives-market.